Sinoma buys maintenance, leasing biz at RMB42.6M

Byswb

Updated Fri, 14 Jan 2011 00:00:00 GMT

China National Materials (HKG:1893) (Sinoma) announced that it agreed to acquire from controlling shareholder China National Materials Group Corporation Ltd. 100% equity interest in Sinoma Equipment Maintenance (Shangrao) Co., Ltd. at RMB30.852 million with RMB1.906 million debt and in Sinoma Slipform Leasing (Shangrao) Co., Ltd. at RMB9.867 million.

Sinoma Equipment Maintenance is principally engaged in equipment maintenance and lease of properties and houses, and Sinoma Slipform Leasing is principally engaged in lease of slipform and houses.

Sinoma is of the view that the acquisitions will revitalize the high-quality assets to fully realize the economic value by way of the acquisition of relevant land use rights, enlarge Sinoma's business scale in transporting equipment manufacture industry, reduce the leasing costs of property and strengthen the future development of Sinoma.

As of 30 September 2010, the audited net asset values of Sinoma Equipment Maintenance and Sinoma Slipform Leasing were RMB30.175 million and RMB9.756 million respectively.